Under the proposal, backed this week by senior officials in the Liberal Democratic Party and its partner Komeito, subsidies would be extended beyond the current 10km radius to include municipalities up to 30km from nuclear facilities.
The government is also considering legal changes to promote economic development in areas close to nuclear plants that would also bring in more money for local authorities.
A portion of the subsidies would be earmarked for evacuation planning in case of accidents – but critics argue the scheme is less about safety and more about co-opting vulnerable local authorities.
“It is effectively a bribe to these communities because years of government policies have drained the countryside of employment and forced people to move to the cities,” said Aileen Mioko Smith, an environmental campaigner with Kyoto-based Green Action Japan.
“With the rural population decreasing and ageing, these communities are desperate for funds,” she told This Week in Asia. “Local authorities are becoming more and more dependent on funds from the government for their budgets and that is what the government is offering them.”